• Q1 Retail spending was very weak, with retail volumes (i.e. sales adjusted for prices) down 2.9%, much weaker than expected.
• Cutbacks continue to be most savage for car purchases: sales volumes fell 11% over the quarter and have fallen steadily for 2 years now.  Weakness in the car industry is a global phenomenon: vehicles usually are the biggest purchase households make outside of a house and are often bought with finance.
• The main domestic news this week will be tourism and migration flows.  On the migration front there is a noticeable drop in departures to Australia, the main driver of higher net migration inflows, as NZers become increasingly aware that job prospects across the ditch have deteriorated noticeably as Australia also feels the pinch.

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